Short selling comes under fire as regional banks sell off

A law firm, which has represented large corporations, has called on US securities regulators to limit short sales on financial institutions, reforming a ban that was implemented in 2008 during the financial crisis. Wachtell, Lipton, Rosen & Katz recommended a 15-day prohibition for the borrowing and short selling of shares of banks that are intentionally under pressure. The revived ban would allow the Securities and Exchange Commission time to act and investors to make informed decisions. While some critique the action of short sellers, others encourage it to keep financial markets running efficiently.